Banks and other financial institutions hold accounts for customers. For instance, a bank may hold a checking account for an individual. When a customer wants to deposit funds into an account held by a bank, the customer may go to a bank branch and present a check to a teller. In general, a check is a piece of paper that represents an obligation by a first entity to pay a specific amount of money to a second entity.
After the customer presents the check to the teller, the check may be processed through one or more conventional check deposit transaction channels before funds are actually deposited into the customer's account. A transaction channel is a series of actions performed to process a type of transaction item that represents a financial transaction. Although different banks may perform different transaction channels, a common first action in a check deposit transaction channel is for the teller to enter the information on the check into a computer database. Next, the teller may place the check into an appropriate bin. Subsequently, an armored car may transport all checks collected during a day to a banking operations center. When the armored car arrives at the banking operations center, employees at the banking operations center may create a digital version of the check and then transmit the digital version of the check to a check processing authority that coordinates check transactions between banks. In the United States, the Federal Reserve System acts as a check processing authority that coordinates check transactions between banks. Ultimately, funds are transferred into the account of the customer. After the employees at the banking operations center create the digital version of the check, the employees at the banking operations center may store the check into an archive.
Errors may occur when the actions of the conventional check deposit transaction channel are being performed on a check. For instance, the teller may enter incorrect information into the computer database or may place the check into the wrong bin. In another instance, the employees at the banking operation center may misplace the check before creating the digital version of the check. Such errors may have serious economic consequences. For instance, money may not be deposited in a bank account when the bank loses a check. In another instance, an error could result in money being deposited in a bank account multiple times (and withdrawn from another bank account multiple times). In all of these cases, it may be expensive and time consuming for the bank to identify and correct errors in the conventional check deposit process.
In addition to this conventional check deposit transaction channel, banks may establish many other transaction channels. For instance, a bank may operate automated teller machines (ATMs) that accept deposits. In this instance, the bank may establish a transaction channel to process checks deposited in ATMs.